What's in a name?
When a title company seeks to uncover matters affecting title to real property,
the answer is, "Quite a bit."
Statements of Information provide title companies with the information they need
to distinguish the buyers and sellers of real property from others with similar
names. After identifying the true buyers and sellers, title companies may disregard
the judgments, liens or other matters on the public records under similar names.
To help you better understand this sensitive subject, the Land Title Association
has answered some of the questions most commonly asked about Statements of Information.
What is a Statement of Information?
A Statement of Information is a form routinely requested from the buyer, seller
and borrower in a transaction where title insurance is sought. The completed form
provides the title company with information needed to adequately examine documents
so as to disregard matters which do not affect the property to be insured, matters
which actually apply to some other person.
What does a Statement of Information do?
Every day documents affecting real property--liens, court decrees, bankruptcies--are
recorded.
Whenever a title company uncovers a recorded document in which the name is the same
or similar to that of the buyer, seller or borrower in a title transaction, the
title company must ask, "Does this document affect the parties we are insuring?"
Because, if it does, it affects title to the property and would, therefore, be listed
as an exception from coverage under the title policy.
A properly completed Statement of Information will allow the title company to differentiate
between parties with the same or similar names when searching documents recorded
by name. This protects all parties involved and allows the title company to competently
carry out its duties without unnecessary delay.
What types of information are requested in a Statement of Information?
The information requested is personal in nature, but not unnecessarily so. The information
requested is essential to avoid delays in closing the transaction.
You, and your spouse if you are married, will be asked to provide full name, social
security number, year of birth, birthplace, and information or citizenship. If you
are married, you will be asked the date and place of your marriage.
Residence and employment information will be requested, as will information regarding
previous marriages if you are divorced.
Will the information I supply be kept confidential?
The information you supply is completely confidential and only for title company
use in completing the search of records necessary before a policy of title insurance
can be issued.
What happens if a buyer, seller or borrower fails to provide the requested
Statement of Information?
At best, failure to provide the requested Statement of Information will hinder the
search and examination capabilities of the title company, causing delay in the production
of your title policy.
At worst, failure to provide the information requested could prohibit the close
of your escrow. Without a Statement of Information, it would be necessary for the
title company to list as exceptions from coverage judgments, liens or other matters
which may affect the property to be insured. Such exceptions would be unacceptable
to most lenders, whose interest must also be insured.
Conclusion:
Title companies make every attempt in issuing a policy of title insurance to identify
known risks affecting your property and to efficiently and correctly transfer title
so as to protect your interests as a homebuyer.
By properly completing a Statement of Information, you allow the title company to
provide the service you need with the assurance of confidentiality.
